FOOL'S GOLD

     We have no doubt all heard at least something about the problems the Social Security and Medicare programs will face in paying the promised amount of benefits to this many people.  I have talked to many people about this situation, and have drawn two conclusions.  Most Americans do not like to think about, let alone discuss, anything that involves money (numbers) and/or finances.  They also do not like to look at or listen to anything involving a lot of numbers, regardless of the subject.  Additionally, politicians have told so many “tall tales” on this subject the past several years that the average person hardly knows what to believe.  People are easily confused by what has come to be called “fuzzy math” because hardly anyone, including any government spokesperson, has been telling the truth in a straightforward and understandable manner.  The truth is available, however, and it has been right under our noses the whole time.  The problem is that it is usually hidden behind a smokescreen of government verbiage that most people simply cannot read without getting sleepy.

     We have all no doubt also heard at least something about proposals to reform Social Security.  If we need to reform it, some people must think there is something wrong with it.  Is there a problem?  If so, how big is the problem, and whom will it affect?  What about Medicare?  Is there a problem, and if so, how big is the problem?   Who can you believe, anyway, when for every person saying there is a problem with one or both of these programs you can find someone else who says everything is just fine?  Again, the answers to all these questions are readily available in easy to understand and simple English.  So, what is the problem?  Why don’t we all just read the facts about these programs and collectively determine what, if anything, needs to be done?  The answers are available, but they are located in a plethora of governmental publications.  Additionally, an accounting background is almost mandatory to assure a complete understanding of what one reads.  Also, each additional rung on the ladder of understanding often requires a complete understanding of the subject matter at the level of the previous rung.  There is no instructional manual to guide the interested party from one part of the puzzle to the next one.  When we consider the lack of interest on the part of most people, coupled with the numbers of people intent on purposely misleading us, it is no wonder that few people can answer the majority of these questions we have posed.

     Additionally, some aspects of the accounting methodologies used in the Social Security and Medicare programs are very difficult to understand.  For example, what exactly is a governmental trust fund?  What possible link could there be between a trust fund such as Social Security and the national debt?  For that matter, what exactly is the national debt?  Who do we owe the money to, and how does the national debt continue to increase in years when our government has a budget surplus and we pay down this very same national debt?  The answers to these questions often require somewhat lengthy explanations, particularly when the reader has little to no background or experience in these areas.  Comprehending the answers is not a terribly daunting task, but it does require some patience and a willingness to continue reading.